- Market sentiment remains 56% bearish
- 59% of pending orders in 1000-pip range are set to BUY gold
- Empty trading session
On Friday morning the yellow metal's price passed a previously active medium channel up pattern's support. The move was expected to occur sooner or later. However, as it occurs it signals traders to sell, as there are almost not support levels down to the 1,335.00 mark.
The Census Bureau released the Building Permits data that came out slightly better-than-expected and instead of the forecast of 1.33M, the residential building permits grew by 1.35M in the period of March.
Building Permits rose by 2.5% annually, reaching the 1.354M growth pace, thus signaling how much of a construction is in the process. Moreover, single-family house building has retained close to the utmost levels ever since the recession began.
Trade technically
If yesterday was empty for swing traders in a Dukascopy analyst's perspective, then Friday is actually empty. There are no events scheduled for the day that could impact the strength of the currency pairs and commodities that are pegged against the US Dollar.
XAU/USD below long term average
Contrary to expectations, the yellow metal was driven by bearish forces on Thursday. This fall, however, was not significant due to the nearby-located 200-hour SMA and a channel line.
This support cluster was surpassed early today, thus giving bears the opportunity to push the pair down to its distant support set by the 23.60% Fibonacci retracement at 1,335.40.
Technical indicators remain bullish for this session. Being restricted by the 55-, 100– and 200-hour SMAs, Gold might be reluctant to pick up momentum during the following hours, at least.
In case of an upside breakout, the pair should not surpass the monthly R1 at 1,355.00.
Hourly Chart
The daily chart shows that there will be no another test of the most dominant resistance line near the 1,335.00 mark. Instead the metal is heading for the 1,335.00 mark, where it will attempt to pass the support of the medium ascending channel and the 23.60% Fibonacci retracement level.
Daily Chart
Markets remain bearish
SWFX market sentiment remains bearish with 56% of traders holding short positions. Meanwhile, pending commands were set to buy the metal in 52% of all cases.
OANDA traders remain bullish on the pair, as 52% of open positions are short. In addition, Saxo bank traders are 52% short.